THE European Union's desperate attempt to save the bloc from economic catastrophe is on the brink after Eurozone finance ministers reignited a bitter feud over plans to fund an emergency rescue package in the wake of the coronavirus crisis.

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Eurogroup president Mario Centeno called a halt to the talks this morning after more than 15 hours of bickering over how to trigger the EU’s bailout fund. The row exposed the deep divisions between the richer north and poorer southern members of the EU’s single currency bloc. Tempers flared despite desperate attempts by Mr Centeno, who is also Portugal’s finance minister, to bridge the traditional divisions.

French finance minister Bruno Le Maire said: “Nothing would be worse for Europe than for some states, because they are richer, to get off to a quick start, while others, because they cannot afford it, start slowly.

“We all need to recover at the same speed in order to guarantee the cohesion, solidarity and unity of the eurozone and our common currency.”

But sceptics of the so-called “coronabounds” plan fear Rome, Paris and Madrid could be using the global pandemic to cash in on their wealthier northern neighbours' recent financial success.

One Brussels source said the atmosphere between member states had become "very toxic".

They added: "It’s a matter of principle and perspective, and that’s never good for compromise."

Germany sought to broker a peace deal between the warring factions by proposing the use of the Eurozone’s €410 billion European Stability mechanism, to provide emergency loans without tough political conditions.

After Italy rejected any concept with conditions being attached to lending, Berlin said credit lines could be issued without government’s facing an EU investigation into their accounts or prior commitments to spending cuts or structural reforms.

The Netherlands emerged as a clear stumbling block to the plan, with the start of last night’s delayed as a consequence.

Dutch finance minister Wopke Hoekstra insisted there must be preconditions if the ESM is going to be used as part of the coronavirus recovery.

He said: “I think it is reasonable and sensible that providing money goes hand in hand with reforms and agreements.”